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user attributes
behavior patterns
service usage profiles
This is called inference leakage. Over time, the AI provider can reconstruct who you are and what you’re doing — without seeing raw identity data.
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Result: The wallet becomes a UI, not an agent.
This quietly breaksself-sovereign identity principles.
Policy manipulation & dark negotiation
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optimization objectives ≠ user interests
This is algorithmic coercion, not a bug. + Explainable Generative AI*
Prompt and context retention
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This recreates centralized identity — without consent.
In addition, if the AIaaS provider experiences an outage, millions of users could be locked out of essential services simultaneously.
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